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Panasonic Delays US EV Battery Manufacturing Expansion Amidst Tesla Sales Slowdown

Published on 11 Jul, 2025, 8:03 AM IST
Updated on 11 Jul, 2025, 8:03 AM IST
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Ameya Naik
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The pause is linked to a decline in demand for Tesla electric vehicles.

Panasonic is delaying plans to fully ramp up production at its new $4 billion battery plant in Kansas due to a slowdown in Tesla's sales, its main customer. The plant was originally expected to reach full capacity by March 2027, producing enough batteries for 30 gigawatt-hours, but this timeline is now uncertain. The decision reflects how closely linked EV makers and their suppliers are – when one faces challenges, it affects the other.

Tesla has recently faced several difficulties, such as declining sales linked to an aging lineup of vehicles, the end of some U.S. EV tax credits, and controversies involving its CEO, Elon Musk. These issues have reduced demand for Tesla vehicles, impacting Panasonic's battery production plans.

This delay sheds light on the changing EV market. While the future of electric vehicles looks promising, short-term shifts in demand and global events can create challenges. Companies like Panasonic must stay flexible and adjust their strategies to keep up with these rapid changes in the industry.

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Panasonic Delays US EV Battery Manufacturing Expansion Amidst Tesla Sales Slowdown